20 July 2026
Russia Ukraine Crisis Wiped Away $160B From Crypto Market
As per CoinMarketCap data, the Crypto market cap has fallen from $1.98 trillion to $1.82 trillion in a week, losing about 8.1%. While the S&P 500 stock index lost about 1.4% this week.
Amid the concern over Russia's invasion of Ukraine led to market slumped, which wiped out roughly $160 billion in market value as investors fled into relatively safer asset classes.
The Crypto market and other broader markets started to fall amid warnings from Western leaders that a Russian invasion of Ukraine was imminent. However, safe-haven assets such as gold, U.S. Treasuries, and stablecoins benefited.
Also, there was a rise in trading volumes from $64.5 billion to $72.3 billion through the week.
As the Crypto market is trading more in line with conventional asset classes, many have started to question whether the Crypto space, especially Bitcoin, is a viable bet against volatility. On Friday, Bitcoin broke below $40,000 for the first time in two weeks.
“Bitcoin has clearly lost its function as a defensive asset lately, showing almost no correlation with gold, which was in high demand on Wednesday and Thursday,” Alex Kuptsikevich, senior financial analyst at FxPro said in a mailed statement.”
At the start of this year, the Crypto market had faced a downfall over the news of the U.S. to hike rates.
However, a massive amount of Crypto trade appeared to be directed towards stablecoins this week, as investors seek less volatile options but still want exposure in Cryptocurrency.
The world’s largest stablecoin, Tether, with a market cap of $80 billion had the highest volumes among its peers in the last seven days, with about $349 billion moved– nearly twice as much as that of bitcoin.
Other stablecoins such as Binance USD and USD Coin recorded combined volumes of $48 billion. Also, USD Coin witnessed an increased interest after its operator Circle doubled the value of a deal to publicly list its shares.
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